Deck 2: The Role of Ethics in Decision Making

Question 1

A formalist is most likely to conclude that a business's secret monitoring of employees is ethical if the monitoring reveals a significant number of crimes or malfeasance,providing a net good for the business.

Answer 1

False
Explanation: Formalists might say that secret monitoring treats employees only as a means to the end of increasing organizational efficiency and does not respect their self-worth as individuals. The monitoring also does not respect their dignity and their privacy. Formalists might conclude that secret monitoring is unethical. Explaining the problem to the employees and asking for their consent to monitor would be a more ethical action to take.

Question 2

Consequentialism concerns itself with the morality of the actions themselves.

Answer 2

False
Explanation: Consequentialism concerns itself with the moral consequences of actions rather than with the morality of the actions themselves. If actions cause overall harm to society, they are unethical. The dominant form of consequentialism is utilitarianism.

Question 3

The foundation of John Rawls's social contract theory is a firm belief that knowledge of people's age,gender,race,intelligence,strength,wealth,or social status will create a just society.

Answer 3

False
Explanation: Rawls suggests a simple first step in determining the ethical values on which a just society can be built. People should assume that they are unaware of their age, gender, race, intelligence, strength, wealth, or social status. This step is vital because it keeps people from being self-interested in the ethical values they consider.

Question 4

Formalism is primarily a duty-based view of ethics.

Question 5

According to Adam Smith,leading a good life means being solely concerned about the fortunes of oneself.

Question 6

Adam Smith,the author of The Wealth of Nations,denied the existence of any moral element in human nature that goes beyond self-interest.

Question 7

The Protestant ethic was a boon to capitalism,but the religious basis of the Protestant ethic was eroded by rising wealth and the encouragement of mass consumption.

Question 8

Business ethics reflect elements of both formalism and consequentialism,but tend to focus more heavily on the former.

Question 9

According to the social contract theory,though there may be social and economic inequalities,these inequalities must be based on what a person does,not on who a person is.

Question 10

Increasing economic interdependence prevents executives and managers at a firm from manipulating corporate actions for their own benefit.

Question 11

Diversity reduces concerns over ethical values.

Question 12

Laws regarding traffic violations predominantly address ethical concerns.

Question 13

Ultimately,the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior.

Question 14

Federal sentencing guidelines reduce criminal fines for legal violations in companies that have taken specific steps to self-police ethical/legal conduct.

Question 15

Utilitarianism judges actions by the morality of the actions and not by usefulness.

Question 16

In society at large,the sharing of moral values hinders social cooperation and increases social control.

Question 17

The news media and the Internet make it increasingly difficult to hide the questionable behavior of large organizations.

Question 18

The social contract theory is based on duty and not on contract or agreement.

Question 19

According to formalist thinker Immanuel Kant,to have good intent,one has to make an exception for one's own behavior.

Question 20

To succeed in international operations,businesses must be sensitive to differences in moral values.

Question 21

To judge the utility of a particular action,it is necessary to consider alternative courses of action.

Question 22

For ethical corporate values to make their most significant effect on decision making,corporate employees must be willing to talk with each other about ethical issues.

Question 23

Courts have examined due care in negligence cases in terms of a balancing test.

Question 24

Which of the following statements is true of the social contract theory?

A) It lays minimal emphasis on individual rights and self-worth.
B) It is based on duty.
C) It has its origins in formalism.
D) It has given rise to utilitarianism.
E) It is based on agreements between people.

Question 25

The Wealth of Nations was written by _____.

A) Adam Smith
B) Karl Marx
C) Immanuel Kant
D) Euripides
E) Socrates

Question 26

Stakeholder theory suggests that through its managers,an ethical corporation avoids risks to stakeholders which,if explained,would be clearly unacceptable.

Question 27

It is a conflict of interest for a judge or administrative regulator to make a decision involving a company in which he or she owns stock.

Question 28

When faced with a dilemma,a consequentialist would rely on absolutism.

Question 29

In a modern corporation,the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders.

Question 30

Creation of codes of ethics is far more important than implementation and enforcement of those codes.

Question 31

Due care usually promotes individual rights and self-worth.

Question 32

One of the observations made by the Spanish journal Boletín Círculo is that profits and business ethics are contradictory.

Question 33

That individuals will do unethical things as part of a mob,which they would never do alone,is widely recognized,and the same pattern can be observed in corporate behavior.

Question 34

For a consequentialist,lying itself is considered unethical.

Question 35

Coupled with an overemphasis on profit,the group effect increases the difficulty of achieving an ethical business corporation.

Question 36

The legal requirement of honoring confidences contains both formalist and consequentialist ethical values.

Question 37

For businesses,merely to observe the law is sufficient as legal regulations are flexible and adequately informed to be the only social guide for business decision making.

Question 38

Ambrose Bierce posited that individuals in large groups such as corporations feel more responsibility for what happens in the group than they do for what happens in their individual lives.

Question 39

In negligence law,failure to exercise due (or reasonable)care is the principal element that triggers liability against a defendant.

Question 40

The way to understand the ethical-legal relationship is to realize that in a society ethical values frequently become law and that legal regulation can reflect the society's ethical values.

Question 41

Dan is a supporter of the formalist view.Which of the following is most likely to be his belief about lying?

A) He is likely to support a lie that is told for personal gain.
B) He is likely to condemn all forms of lying.
C) He is likely to support a lie that is told for the common good.
D) He is likely to disapprove of lying only in instances that hurt people.
E) He is likely to support a lie that is harmless.

Question 42

Rawls's veil of ignorance means that to think ethically people must __________.

A) lose the assumption that what they personally want or need is necessarily morally correct
B) recognize that they cannot make valid ethical decisions unless they are totally unaware of the other parties involved so as to eliminate bias
C) recognize that they cannot make valid ethical decisions unless they are totally unaware of the circumstances leading to the ethical dilemma so as not to be influenced by unchangeable history
D) put themselves in the position of those affected by their decision and act as they would want them to act
E) make every ethical decision as if they did not have any education in ethical or moral history to color their decision

Question 43

Ethical formalists maintain that __________.

A) harm to an individual is acceptable as long as it serves the greater good
B) values are situational and change based on circumstance
C) individuals have rights that should not be infringed even at the expense of society
D) the good of the many always supersedes the good of the few
E) the focus should be more on the consequence than on the act of an individual

Question 44

Which of the following statements is true about a formalist?

A) A formalist places ethical focus on the worth of an individual.
B) A formalist predominantly believes and works for the common good.
C) A formalist attempts to achieve utilitarianism as fast as possible.
D) A formalist evaluates the consequence or end result of lying and not lying itself.
E) A formalist lays less emphasis on duty or moral obligation.

Question 45

The _____,proposed by Kant,says that a person has a moral duty to act in the way he or she believes everyone should act.

A) social contract theory
B) deontological imperative
C) categorical imperative
D) consequentialist theory
E) relativistic approach

Question 46

Which of the following statements is an example of ethical formalism?

A) Openness in communications is deemed fundamental.
B) There is no doubt that the standards of morality are flexible.
C) The greatest happiness of the greatest number is the foundation of morals and legislation.
D) The strongest argument for raising the ethics bar boils down to self-interest.
E) Loss of confidence in an organization is the single greatest cost of unethical behavior.

Question 47

For the formalist thinker Immanuel Kant,to be ethical requires that people act with a good intent.To have a good intent,people have to act in ways that are ethically consistent.This emphasis on consistency Kant called the _____.

A) protestant ethic
B) categorical imperative
C) pure reason
D) practical reason
E) hypothetical imperative

Question 48

Which of the following statements is true of ethical systems?

A) They are institutions of the state.
B) They believe that the motivation to observe moral values usually comes from within an individual.
C) They set a bare minimum standard acceptable to a society, and violations of the standards are punishable under the legal system.
D) They are based on just meeting minimum legal requirements.
E) They hold that every ethical value is enforced by the state.

Question 49

According to Rawls,which of the following serves as the first step in determining the ethical values on which a just society can be built?

A) To assume that one is not aware of one's own age, gender, race, intelligence, strength, wealth, or social status
B) To weigh the effects of one's decisions on the society and oneself and thereby choose the path that brings in maximum benefit
C) To be completely self-aware of one's ambitions and goals
D) To test the morality of actions done by others in a society
E) To use formalism to formulate acceptable codes of conduct

Question 50

The social contract theory concerns itself with how to construct a just society given __________.

A) the many inequalities of wealth, knowledge, and social status
B) the difficulty of acting toward others as people would have them act toward themselves
C) the many logical fallacies contained in legal contracts
D) the implicit agreement that the powerful are best suited to govern
E) the inherent nature of those in a society to argue and reject consensus

Question 51

Which of the following is one of the ethical principles proposed by Rawls?

A) People from the lower strata of a society should be given special opportunities for achievement.
B) Social inequalities should be based on a person and not on his or her actions.
C) Everyone is entitled to certain equal basic rights, including liberty, freedom of association, and personal security.
D) The concerns of an individual are more important than the concerns of a society.
E) Economic inequalities should be based on a person and not the person's actions.

Question 52

Which of the following statements is true of formalism?

A) It is primarily concerned with the consequences of a person's action rather than the action itself.
B) It lays more emphasis on end results and their evaluation.
C) It focuses more on common good rather than on individual rights.
D) It is an approach to ethics that affirms an absolute morality.
E) Its dominant form is utilitarianism.

Question 53

Isla fakes a headache to skip her classes.Few weeks later,when her friend,Isaac,lies to the teacher about being sick,Isla reports him to the teacher.She tells the teacher that she is not in favor of lying.According to Immanuel Kant,Isla would most likely be in violation of _____.

A) utilitarianism
B) the categorical imperative
C) a veil of ignorance
D) the Protestant Ethic
E) due diligence

Question 54

Who developed the social contract theory?

A) John Rawls
B) Immanuel Kant
C) John Locke
D) Robert Jackall
E) Plato

Question 55

Who among the following developed the theory of the categorical imperative?

A) Socrates
B) Plato
C) John Rawls
D) Immanuel Kant
E) Robert Jackall

Question 56

According to Rawls,it is important to forget one's own age,gender,race,intelligence,strength,wealth,or social status when determining the ethical values on which a just society can be built.What purpose does this step serve?

A) It permits one put oneself first before considering others.
B) It keeps one from being self-interested in the ethical values he or she considers.
C) It ensures that one acts for one's self-esteem and identity rather than on the perception of others.
D) It makes it easier to consider the usefulness of one's actions.
E) It promotes the assumption that what one personally needs or wants is morally correct.

Question 57

In the context of ethics,the good is most likely to be defined as __________.

A) a sustained way of producing high-quality goods and services
B) the moral goals and objectives people choose to pursue
C) the acquisition of the things necessary for having a good life
D) a formal system of examining one's moral life
E) a formalized, duty-based approach to achieving one's targets

Question 58

Which of the following statements is true of the categorical imperative?

A) It allows one to make an exception for one's own benefit.
B) It propagates that there is hardly any need to act in the way one believes everyone should act.
C) It holds that one can choose to be unethical if a situation demands it.
D) It requires one to act with good intent to be ethical.
E) It holds that one can hold contradictory opinions and act on them without having to ensure consistency with what others believe.

Question 59

Which of the following statements best defines ethics?

A) Ethics is a legal system for evaluating who profits in a business transaction.
B) Ethics is merely a different term for the laws and regulations created by a government.
C) Ethics is an irrational method used specifically in examining the morality of lives.
D) Ethics is a simplified term given to the momentary decisions one makes regarding which answer will lead to the most personally successful solution.
E) Ethics is a formal system for deciding what is right and wrong and for justifying moral decisions.

Question 60

Which of the following is a difference between ethical and legal systems?

A) The moral values are observed from within the legal system, whereas the moral values are observed in the form of state transaction in an ethical system.
B) An ethical system consists of rules to guide conduct, whereas the legal system consists only of rules to foster social cooperation.
C) An ethical system primarily deals with what is wrong, whereas the legal system primarily deals with what is right.
D) The legal system involves a broader-based commitment to proper behavior than an ethical system.
E) The legal system is an institution of state, whereas an ethical system is not an institution of state.

Question 61

Which of the following statements is true of the role of economic interdependence on business ethics and society?

A) It reduces concerns about business ethics.
B) It sometimes gives opportunities to executives who control what stockholders own to manipulate corporate actions for their own benefit.
C) It reduces any transparency problems in an organization as corporate leaders are usually the real owners of corporations.
D) It predominantly results in utilitarianism.
E) It ensures that the decision taken by stockholders have little effect on others.

Question 62

The Protestant ethic was rooted in a(n)_____.

A) utilitarian approach
B) consequentialist approach
C) relativist approach
D) formalist approach
E) epistemological approach

Question 63

The dominant form of consequentialism is _____.

A) utilitarianism
B) hedonism
C) libertinism
D) narcissism
E) Marxism

Question 64

Which of the following occurs when one attempts to serve two masters?

A) A conflict of interest
B) A veil of ignorance
C) A writ of certiorari
D) Ratio decidendi
E) Voir dire

Question 65

Which of the following statements is true of consequentialism?

A) It focuses primarily on individual rights.
B) It views lying as an unethical practice.
C) It is found in the way in which managers use cost-benefit analysis to evaluate alternative courses of action.
D) It is primarily a duty-based view of ethics.
E) It asserts that individuals have rights, and that these rights should not be infringed, even at the expense of society as a whole, because they have an intrinsic moral value to them.

Question 66

Which of the following ethical principles focuses on the common good rather than on individual rights?

A) Formalism
B) Hedonism
C) Utilitarianism
D) Narcissism
E) Libertinism

Question 67

For utilitarians,the __________.

A) individual rights of a person are integral to analyzing the morality of actions
B) common good is of the least importance
C) formalist approach is the basis of every moral action
D) ethical focus is on the self-worth of an individual
E) end justifies the means

Question 68

Which of the following refers to the collection of values that guides human behavior?

A) Divinity
B) Morality
C) Utility
D) Integrity
E) Legality

Question 69

_____ derives from society's expectations about how fair and reasonable actions are.

A) Good faith
B) Due care
C) Utilitarianism
D) Conflict of interest
E) Liberty

Question 70

The end result of ethical examination is what philosophers call _____.

A) the good
B) the categorical imperative
C) a veil of ignorance
D) the Protestant Ethic
E) due diligence

Question 71

Which of the following statements is true of the legal system?

A) The state enforces legal rules through civil and criminal sanctions.
B) The motivation to observe moral values in a legal system comes from within an individual.
C) It sets moral standards but does not legally prosecute in instances of breach.
D) It involves a broader-based commitment to proper behavior than does the ethical system.
E) It sets the highest ethical standards acceptable to a society.

Question 72

Which of the following is a similarity between ethical and legal systems?

A) Both systems are institutions of the state.
B) In both systems, the motivation to observe moral values comes from within an individual.
C) Both systems are based on utilitarian views.
D) Both systems consist of rules to guide conduct and foster social cooperation.
E) In both systems, ethical behavior is based on just meeting minimum legal requirements.

Question 73

According to the Ethical Norms and Values for Marketers from the American Marketing Association,which of the following ethical values states that a marketer should accept the consequences of the marketing decisions and strategies taken by him or her?

A) Honesty
B) Responsibility
C) Fairness
D) Openness
E) Respect

Question 74

The primary goal or end of business leaders is to produce a profit.This orientation reflects _____.

A) deontology
B) formalism
C) consequentialism
D) the Protestant ethic
E) Darwinism

Question 75

In the context of ethical issues,modern economic theory reflects __________.

A) formalism
B) the categorical imperative
C) the monopolistic approach
D) consequentialism
E) utilitarianism

Question 76

The values-based management approach to business ethics illustrates consequentialism through its emphasis on __________.

A) teaching ethical values that enhance the profitability of a company specifically to the top management and supervisory personnel
B) teaching ethical values that enhance the profitability of a company to all employees
C) teaching ethical values to management and supervisory personnel with the aim of avoiding ethical issues, whether profitability is affected or not
D) teaching ethical values to all employees with the aim of avoiding ethical issues, whether profitability is affected or not
E) teaching ethical values to employees to punish them for unethical conduct

Question 77

Which of the following statements is true of the sharing of moral values?

A) It usually fails to set limits on unethical behavior.
B) It is a significant means of social control.
C) It creates an atmosphere of mistrust and suspicion among people.
D) It disrupts social harmony.
E) It stifles social cooperation as many people fail to accept others.

Question 78

For a consequentialist,the __________.

A) act of lying itself is unethical
B) end results of lying are of little important
C) harm done by lying is unethical
D) harm done by lying makes it unethical
E) act of lying is justified if it is concealed well

Question 79

According to the Ethical Norms and Values for Marketers from the American Marketing Association,which of the following ethical values requires marketers to try to balance justly the needs of a buyer with the interests of a seller?

A) Honesty
B) Responsibility
C) Fairness
D) Openness
E) Respect

Question 80

Which of the following statements is true of the Protestant ethic?

A) It was a massive threat to capitalism.
B) It was rooted in a consequentialist approach.
C) It has become a type of utilitarian consequentialism.
D) It has remained unaffected by rising wealth and increasing mass consumption.
E) It has become an organizational ethics that discourages the modern bureaucratic managerial system.